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Fisher & Paykel Healthcare Corp Ltd

FPH: XASX (AUS)

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Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	A$92.00	Snwgbj	Jtljhslhmx

Fisher & Paykel Healthcare Increases 1H Profit, But Shares Remain Overvalued

Johannes Faul , Angus Hewitt

Nov 26, 2018

We continue to expect significant growth in Fisher & Paykel's key hospital segment, which enjoys switching costs underpinning the firm's narrow moat rating. However, given softer legacy product sales in first-half fiscal 2019, we have lowered our full-year net profit after tax, or NPAT, forecast to NZD 210 million from NZD 214 million. Last trading at around NZD 13.00, shares in Fisher and Paykel Healthcare trade at a premium to our unchanged NZD 11.00 fair value estimate. Despite increasing first-half fiscal 2019 NPAT 20% versus the previous corresponding period, or pcp, beating guidance of NZD 95 million, Fisher & Paykel Healthcare retained full year profit guidance of NZD 205 to 210 million, tracking our updated projection.

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